Advanced Search
MyIDEAS: Login to save this article or follow this journal

Sequential Entry with Brand Loyalty Caused by Consumer Learning-by-Using

Contents:

Author Info

  • Gabszewicz, Jean
  • Pepall, Lynne
  • Thisse, Jacques-Francois

Abstract

The authors examine first mover advantages in a new product market with sequential entry. Effort is necessary to learn how to use new products and consumers are assumed to differ in their ability to expend such effort. The authors consider the intertemporal pricing strategy of the first entrant who anticipates the late entry of a rival firm. The first entrant's optimal strategy is to set a low introductory price. This builds up a customer base, which remains loyal despite the later entry of a lower-priced rival, and weakens price competition between the two firms. Thus, brand loyalty makes entry into the market easier. Copyright 1992 by Blackwell Publishing Ltd.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://links.jstor.org/sici?sici=0022-1821%28199212%2940%3A4%3C397%3ASEWBLC%3E2.0.CO%3B2-4&origin=bc
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Industrial Economics.

Volume (Year): 40 (1992)
Issue (Month): 4 (December)
Pages: 397-416

as in new window
Handle: RePEc:bla:jindec:v:40:y:1992:i:4:p:397-416

Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821

Order Information:
Web: http://www.blackwellpublishing.com/subs.asp?ref=0022-1821

Related research

Keywords:

Other versions of this item:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Jean J., GABSWEWICZ & Filomena, GARCIA, 2005. "Quality improvement and network externalities," Discussion Papers (ECON - Département des Sciences Economiques) 2005064, Université catholique de Louvain, Département des Sciences Economiques.
  2. Julie Hunsaker, 2001. "The impact of riverboat casinos on the demand for gambling at casino resorts: a theoretical and empirical investigation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 22(1-3), pages 97-111.
  3. Jacques-François Thisse & Jean J. Gabszewicz, 2000. "Microeconomic theories of imperfect competition," Cahiers d'Économie Politique, Programme National Persée, vol. 37(1), pages 47-99.
  4. Robert Schmidt, 2013. "Price competition and innovation in markets with brand loyalty," Journal of Economics, Springer, vol. 109(2), pages 147-173, June.
  5. Osiris Jorge Parcero & Emiliano Villanueva, 2011. "World Wine Exports: What Determined the Success of the ‘New World’ Wine Producers?," CRIEFF Discussion Papers 1103, Centre for Research into Industry, Enterprise, Finance and the Firm.
  6. Lee, Cheryl Hill & Schluter, Gerald E., 2002. "Why Do Food Manufacturers Introduce New Products?," Journal of Food Distribution Research, Food Distribution Research Society, vol. 33(01), March.
  7. Ornella Tarola & Sandro Trento, 2008. "Innovazione commerciale ed effetti di rete: quali implicazioni di politica industriale?," DISA Working Papers 0802, Department of Computer and Management Sciences, University of Trento, Italy, revised 04 Jul 2008.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bla:jindec:v:40:y:1992:i:4:p:397-416. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.